What is Employee Monitoring? How It Can Benefit Your Business

what is employee monitoring

'Employee monitoring' is a term that has a paramount effect on businesses. While companies benefit from it, many face trouble for not having proper insights into workplace monitoring.

The most common employee reaction is, 'Why does my job track so much?' Employees often feel uncomfortable with the monitoring. On the other hand, it fortifies businesses as employee monitoring software can do much more than staff tracking.

After COVID-19, companies adopted remote work and hybrid work culture. At least many companies allow employees to work from home for specific times.

It's all possible because of the employee monitoring system. To make it more efficient, you need to know the details, including the types, the pros and cons of employee monitoring, and how to integrate it into your system.

Let's jump right into it.

Table of contents

  • Employee monitoring: what it is
  • Types of Employee Monitoring
  • Pros and Cons of employee monitoring
  • Legal and ethical consideration of monitoring employees
  • How do you choose employee monitoring software?
  • Employee monitoring example with Apploye

Employee monitoring: what it is

Monitoring employees' activities means tracking their activity, behavior, and performance. The primary function of employee monitoring is to track employee productivity. Other important reasons you may find are performance evaluation, data protection, security, and compliance. In other words, it is not to keep the employees on task but to protect your business.

Workforce tracking is not new. It started with the Industrial Revolution in the late 1700s. Today's tools are considerably more sophisticated. The employee monitoring software market is anticipated to grow to $1465.2 million by 2032.

The demand for employee oversight is extended to automate payroll, project management, workforce optimization, etc. Manage your remote employees or field staff with the help of a blended approach to physical and digital tracking. Let your team be productive wherever they are.

Types of Employee Monitoring

It started with maintaining the attendance book, where employees manually entered their clock-in/out time, leaves, and breaks. The process of employee tracking systems has been extended to automatic systems.

Here are the details of the most used and common types of employee monitoring.

details of types of employee monitoring

Network and Internet usage monitoring

If you ask anyone to define employee monitoring, the first thing that comes to his mind is tracking computer activities, applications, and internet usage. Monitoring internet usage and online activities is vital to ensure employees use the internet correctly. It guards against the misuse of work hours and company resources. It monitors how much time you spend on each website. The records provide trends of how employees use the internet.

However, employees may have concerns about what this involves and how it's done. The system monitors every website you open, noting the domain and the opened pages. This clarifies whether you are on work websites or browsing personal media.

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Screen Recording and Capture

This tool helps them understand how one uses their time and tracks what transpires on the screen throughout the day. Employers can easily know whether you are engaged in work or what makes you slow down.

From opening an application to closing it down, it saves you what you do.

The screenshots of the screen show how much time is utilized on work-related tasks. Therefore, they may be valuable for managers in understanding the workflows.

Screen recordings clearly show how you flow from task to task. When your employer sees where processes slow down, they can identify how the business can become more efficient.

Screen capture is helpful for security purposes, too. For instance, if one inadvertently opens some unauthorized site, it may be trapped in the system within seconds. Sometimes, it may lead to activities not related to work, such as excessive browsing on social networking sites or other websites unrelated to work. Thus, the employer can maintain a healthy atmosphere in the workplace.

E-mail Monitoring

Controlling the email line of communication among employees and outsiders is highly needed because it saves your company from many risks.

Since external communication is a major threat point, this ensures that the sensitive data does not reach unintended recipients. If anything suspicious turns up, you can immediately step in to limit potential damage.

Email monitoring is not just surveillance. It is one sure way to protect your business proactively by ensuring communication runs without hiccups. It helps you instill professional security and protects the company from risks. For that reason, it is considered an integral part of running modern businesses.

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For further read: How you can better manage email-monitoring.

Keystroke Logging

Keystroke logging checks and counts every key pressed on a computer. It lists everything you input, such as passwords, chats, and documentation. The tracking of movement and actions of the mouse pointer is the mouse movement tracking.

These two features record employee activities during work. For example, you can use them to determine whether the employee concentrated on the tasks at his workplace or was absent-minded and did not attend to them.

However, these methods are invasive, so employees may feel distrust and discomfort using them. To overcome this trust issue, apply proper policy and assure employees that all these happen legally and only to enhance the business's security or productivity.

Later in this article, we will discuss the legal implications and compliance.

Application and Software Use Monitoring

Tracking the application and software usage is mandatory because you'd need to track which apps employees use most and the time they devote to each. It also gives an overview of which digital tools work best for your team to better support their tasks and goals. Employers can use spyware to track employee program usage. For instance, frequently using social media or other non-work-oriented apps may indicate low productivity.

It also identifies which tools your employees depend on most. If some applications are used frequently, this may prove they are essential in the team's workflow. On the other hand, if specific tools are never in use, you could opt out of them or find alternatives that suit their needs.

GPS Tracking

GPS tracking facilitates remote and hybrid work monitoring solutions. It can record every route, including stops and how long one has spent at each stop. These records help us understand how to plan and assess productivity to optimize routes or travel time further.

It enables geofencing, where you can automate employee attendance, track their time, and task automation.

Also, it lets you see where your drivers or field employees are at any given time. It is much easier to manage logistics, ensuring they follow the best route and are most efficient to save time and fuel.

GPS tracking boosts safety for your employees. Hence, it minimizes risks to your employees and lets them feel secure.

Video Surveillance

Video or CCTV cameras may sound old-fashioned. It remains one of the most robust methods of recording work behavior. It contributes to maintaining a professional environment.

Beyond checking on attendance, video monitoring is the eyes and ears on the ground to detect theft, unauthorized access, or unsafe behavior.

Moreover, workplace monitoring makes the employees more conscious of safety precautions and behaving properly at work.

After all, CCTV monitoring is not just for surveillance but to create an environment where your team will work efficiently and feel secure.

Productivity monitoring

The employee monitoring software lets you measure the time to complete a task. In addition, with the project management software, you will know precisely how each employee works and how efficiently he manages the tasks.

For example, time trackers show the time spent working on some projects or activities. You can see where the employees' focus is and where the time is wasted. Project management software allows you to visualize which tasks are on schedule and which have delays. Thus, it gives a clear view of project progress.

You can also use productivity reports to highlight areas that need more focus to improve. This observation lets you notice employees who need more help or training.

Biometric Monitoring

The biometric system works on unique physical features, like fingerprints, faces, or iris. It can distinctly identify employees. This system will give your business a better way of tracking when you or other co-workers clock in or out.

It can guarantee no time fraud, like "buddy punching," where one individual punches the time for another. Biometric monitoring brings added security value: only authorized employees can access certain areas.

Moreover, biometric data is much harder to compromise than badges or even using a PIN code. On this count, the system provides a secure way of maintaining accurate records.

Phone monitoring

Imagine managing a dynamic team across various locations, some stuck in busy city offices and others in the quiet of their homes. Phone tracking lets you take the pulse of your business operations and puts you in control.

In today's connected world, tracking via phone will be one way to help your business stay on top with everything from customer support and sales to effective marketing and management of your field and remote employees.

However, it becomes an invasion of your employee's privacy. Hence, you must balance gathering the much-needed insights without crossing the line into invading privacy.

Access Control Monitoring

Access control monitoring puts you in control. You can know who has gained access to what part of your company and when, and you are afforded levels of oversight and security management. It serves a proactive security catering to workplace dynamics.

Think of this system as a highly vigilant watchdog. For example, when an employee tries to access some system or area outside their daily scope of duties, you are immediately notified. Of course, it's not about distrust. Rather, it is about maintaining a secure environment. These notifications may be the first indication of a security breach and, thus, enable immediate, effective response.

Employee Behavior Analytics

With behavioral analytics in employee monitoring, you can understand what your employees do and, more importantly, how they do it. It says a lot about productivity, engagement, and security risks.

This kind of data doesn't just fill spreadsheets; it tells a story. It will show you who is always productive, who may need extra support, and where your workflows could be streamlined for better efficiency. For instance, if you feel that some particular employees are logging overtime, that may hint at an issue from an imbalance in workload.

However, employee behavior analytics does more than shed light on areas for improvement. Proper insights help craft a more caring, productive, and safe workplace.

Pros and Cons of employee monitoring

Get the details of the pros and cons of monitoring employees

The benefits of employee monitoring

benefit of employee monitoring

Boost employees performance

When you know that every activity is being monitored, your mind will be more focused and stick to the work. It works for every employee working in an organization.

It's as effective for office employees, remote employees, and those working from home. A survey shows that 60% of companies hiring remote workers use employee monitoring software to improve productivity.

As an employer, you may be concerned about how your employees perform during work hours. They might genuinely engage in their tasks but can't bring the expected output.

The solution lies in the reports and analytics you find from monitoring data. You can point out the gaps and take action accordingly. The matrices help you evaluate who needs training or who needs counseling. Thus, it may improve overall workforce efficiency.

Better time management

Employee monitoring enables you to oversee employees' time management. The insights show their performance on a specific task, on which task they are productive, and which one takes a long time to finish.

It gives a detailed breakdown of how employees engage in work and non-work-related activities. You may provide tools or training if employees spend long hours on repetitive tasks.

Monitoring lets you balance workloads better by spotting which team members may be overloaded and which may need more challenging tasks. When work is distributed more fairly, everyone's time is used better, which boosts team morale and productivity.

Effective team management

effective team management steps

For effective team building, it's necessary to balance the workloads among the members, combine them with the common goals, and assign the right persons to the right task.

The monitoring tools help you to identify the working patterns of the individuals. It helps you to make a diverse team and assign the right task to the right person.

As it shows the project status, monitoring employee performance further smoothes the way for improved collaboration. You can provide further support where necessary.

Optimize workforce and resources

Workplace monitoring will enhance your ability to manage your workforce and resources effectively. When you track the work pattern, you know exactly where time is consumed and what holds people up.

You are in a vantage position where you can allocate tasks fairly to avoid burnout. It will inform you about investing in the right tool or relocating underused assets.

For instance, if some tool is used less often, it may be worth redirecting money toward something your team needs more regularly and cost-effectively.

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For further read: Know the details of the benefits of employee monitoring.

Enhancing Security and compliance

When your workplace uses monitoring, it can improve the security and safety of the company's sensitive data. Think about it like having cameras in a store. Just like these cameras help prevent theft, workplace monitoring ensures safety.

Why is this important? It protects against internal security threats by letting you see who accessed which files and when. This oversight is needed in today's environment, where people work remotely and your team members may not always be there in your office.

Flexibility and opportunity of remote work

Employee monitoring opens the flexibility to work remotely. As you work from home or anywhere, companies can track tasks and your productivity. You can enjoy this freedom while proving to your employer that you are not lagging.

With monitoring in place, your employer can trust that you are productive, knowing exactly how much time you spend on projects. This trust leads to choosing your hours or working from anywhere.

Remote work opens up a world of opportunities for career growth. Companies can also hire from anywhere all over the world.

Want to be the master of remote team management? Try Remote Employee Monitoring Software

Drawbacks of monitoring

drawbacks of employee monitoring

While you know all about the pros of staff monitoring, some employees may not like being monitored by employers or any employee spying on other employees. The most valid reason is that they may feel unsafe in sharing personal data.

Let’s check out the drawbacks of monitoring employees.

Privacy concerns

Very often, employees feel that personnel tracking is like Big Brother watching. This issue arises if the monitoring isn’t just about what you do during work hours but extends to your personal devices or activities.

You may feel someone watching over your shoulder all the time. It can make you feel like you’re always under scrutiny, which can cause stress and demotivation.

Trust issue

You might wonder why employers need to keep track of everything if they even closely trust you?! It's tough to give your best to your job when you feel management doesn't trust you.

This may make you feel less attached to your work and less committed to your organization.

A lot of your coworkers may also feel strained by the continuous monitoring. It is a stressful environment to work in when nobody seems to trust each other.

This might lead to people looking to quit their jobs, which is not healthy for the company at all.

Impact on workplace morale

It's hard to relax and be creative when you're always being watched. You might find yourself doing tasks to meet the exact standards set by your employer rather than doing your best work.

When employees are monitored, they may hesitate to try new approaches or innovative solutions rather than stick to safe, routine tasks.

Also, it can harm morale and make a workplace feel more stressful and less supportive. Managers need to think carefully about how much monitoring is necessary and how to maintain a good relationship with their employees.

Focused on quantity over quality

When everything you do is counted in your workplace, there is often a big emphasis on how much you do, not how well. Productivity is not just a number that you get from employee monitoring software. It's more about quality performance than quantity. If all that matters is trying to meet the quantity targets, these elements will likely be missed. Over time, this may result in lower standards and less effective work.

If your company's only gauge is how fast you got it done, the quality effort seems less important, making you feel that the important thing is to rush through tasks to get more done.

As an employee, the quality of your work is not valued as much as the quantity may be disheartening. You could become less motivated or less satisfied with your job.

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Want more quality work? Know how you can track employee performance

As you know, some invasive and non-invasive methods are used in employee monitoring, the most asked questions that come to your mind are-

  • Is it legal to monitor employees
  • Does employee monitoring impact privacy rights?
  • How can companies balance productivity and employee privacy?

The answer is 'yes' in general. You can use an employee tracking system to monitor employee performance and engagement. At a time, you need to ensure data protection and follow some significant rules and boundaries so that this will be deemed fair and legal.

Some countries or regions have active employee monitoring laws. Among them, the General Data Protection Regulation (GDPR), and Data Protection Act 2018 (DPA), in Europe, The federal and state laws in the U.S., and the Workplace Surveillance Act in Australia are notable.

While monitoring for work performance or security in remote work settings is legal, respecting your employees' privacy is important. Avoid monitoring private activities that are not work-related, such as personal emails and social network accounts. This consideration fosters a respectful and considerate work environment.

Does employee monitoring impact privacy rights?

It depends on the manner of monitoring and the kind of laws in place. Since this may mean observing how you use work gadgets, emails, and even your time, it touches on your privacy.

Companies often have the legal right to monitor employees, especially when using company-provided tools and networks. But even though monitoring for most activities may be legal, your privacy rights matter. Most laws require employers to be open with their employees concerning monitoring. They must clear you about coworkers who watch your every move and teams monitoring employees.

How can companies balance productivity and employee privacy?

As an employee, all you want is to be trusted and your privacy respected, while your employer wants to ensure the work will be done effectively.

The first thing is to let transparency be in place. Define the monitoring purpose. It generates workplace transparency and trust.

Second, an employer shall monitor only the activities required for business purposes. It should be limited to work-related tasks to avoid intruding on one's personal life.

Ensure the ethical use of monitoring tools. Your employer may track your progress using monitoring tools during work hours.

Companies should enforce the privacy laws, such as GDPR or local laws related to data protection. Be sure to get employee consent to monitor.

Also, consider the impacts of employee monitoring on the employees' mental health. Employers need to differentiate productivity vs. intrusion.

How do you choose employee monitoring software?

Which will be the best employee monitoring tool for you? When you've thousands of options, getting confused is normal.

Here, we've brought some basic steps. It will guide you in finding employee monitoring best practices.

best employee monitoring criteria

Set your goals to find out why you should use employee monitoring tools.

Start by determining what you want to achieve with your employee monitoring system. Do you want to boost productivity, manage remote workers, or protect sensitive data? Knowing your goals will guide you on the most important features you need.

Be sure to choose features that would be valuable for your business.

Look for features like time tracking, website and application usage, activity reports, screen capture, or keystroke tracking. Also, advanced features like location tracking, team-wise project management, payroll, and integrations should be considered.

Choose to go for ease of use and compatibility.

A sound employee monitoring system should be easy for everyone to use. Very complex software slows down productivity and detracts from the overall efficiency of your team. Make sure the software is compatible with the devices your employees use.

Compare Costs

Budget is always one of the factors. Some software charges per user, while others offer a flat fee. Look for the best value and something that fits your budget without sacrificing essential features.

It is important to let your employees retain their private space when monitoring tools are engaged. Be transparent. Inform them about what is being monitored and why. Also, check the local laws to ensure your monitoring practices are legally viable and in line with all norms.

The app should also protect your company's data. Find encryption tools and other security features that will protect sensitive information.

In short, make a checklist with the criteria you need, including purpose, the team size you want to monitor, and costs. Also, the app should ensure workplace security.

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Pro tip: Get the list of best employee monitoring software.

Employee monitoring example with Apploye

You have come a long way in defining monitoring, knowing the pros and cons of employee monitoring, and how you can apply it in your system. It’s time to learn in practice about workplace monitoring with Apploye

Here’s how Apploye can make employee monitoring easier for you, step by step:

Time tracking easily

Just imagine seeing, in real-time, that your team starts working and stops. With time tracking at Apploye, you get an idea of exactly how employees work from opening the office door after business hours. No need to second-guess yourself.

Gain Actionable Insights

Want to know who works efficiently and where there is a need for improvement? In-depth reports from Apploye will provide you with all the data. You can view the work hours, task completion rate, and overall productivity at a glance. Also, it provides real-time performance analytics.

The screenshot feature will enable your team to track activities without bothering them. You can check what they are working on without overbearing or even micromanaging.

Project Management

Keep tasks on course, assign tasks to employees, monitor the progress of your work, and manage deadlines in one place. This keeps everyone on the same page and helps you avoid those crazy, last-minute rushes.

Trust Building Through Transparent Monitoring

When you feel that monitoring focuses on support and personal development, it is a tool for your benefit rather than a cause to worry about. Thank Apploye for building trust, as it works to make you feel supported and not tracked.

You can realize that monitoring creates a better, more productive workspace for all participants. Transparent monitoring creates a culture where Apploye respects digital privacy in the workplace.

Support for Remote and Hybrid Teams

Whether your team is working from home, coming into the office, or a little bit of each, Apploye helps you monitor their performance. Wherever they are, connected to your team, you will feel.

With Apploye, improving employee monitoring becomes simple, flexible, and non-intrusive. It promotes work-life balance through remote monitoring. You’ll manage your team’s productivity while keeping your workflow smooth and efficient.

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